SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995
Commission file number 33-41484-01
SEARS CREDIT ACCOUNT MASTER TRUST I
(Exact name of registrant as specified in its charter)
Illinois Not Applicable
(State of Organization) (I.R.S. Employer Identification No.)
c/o Sears Receivables Financing Group, Inc.
3711 Kennett Pike
Greenville, Delaware 19807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302)888-3176
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which each class
to be so registered is to be registered
None Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
5.90% Series 1992-1 Master Trust Certificates
(Title of Class)
Registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months and (2) has been subject to such filing requirements for the past
90 days.
Yes x No
PART I
Item 1. Business
The Sears Credit Account Master Trust I (the "Trust") was formed
pursuant to the Pooling and Servicing Agreement dated as of November 18,
1992 (the "Pooling and Servicing Agreement") among Sears, Roebuck and
Co. ("Sears") as Servicer, its wholly-owned subsidiary, Sears
Receivables Financing Group, Inc. ("SRFG") as Seller, and Bank of
America Illinois as trustee (the "Trustee"). The Trust's only business
is to act as a passive conduit to permit investment in a pool of retail
consumer receivables.
Item 2. Properties
The property of the Trust includes a portfolio of receivables (the
"Receivables") arising in selected accounts under open-end credit plans
of Sears (the "Accounts") and all monies received in payment of the
Receivables. At the time of the Trust's formation, Sears sold and
contributed to SRFG, which in turn conveyed to the Trust, all
Receivables existing under the Accounts as of the end of certain of
Sears regular billing cycles ending in May and November, 1991 and all
Receivables arising under the Accounts from time to time thereafter
until the termination of the Trust. Information related to the
performance of the Receivables during 1995 is set forth in the ANNUAL
STATEMENT filed as Exhibit 21 to this Annual Report on Form 10-K.
Item 3. Legal Proceedings
None
Item 4. Submission of Matters to a Vote of Security Holders
None
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters
Investor Certificates are held and delivered in book-entry form
through the facilities of The Depository Trust Company ("DTC"), a
"clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934, as amended. The sole definitive
Investor Certificate is held by CEDE and Co., the nominee of DTC.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
None
PART III
Item 12. Security Ownership of Certain Beneficial Owners and
Management
As of March 15, 1996, 100% of the Investor Certificates were held
in the nominee name of CEDE and Co. for beneficial owners.
SRFG, as of March 15, 1996, owned 100% of the Seller Certificate,
which represented beneficial ownership of a residual interest in the
assets of the Trust as provided in the Pooling and Servicing Agreement.
Item 13. Certain Relationships and Related Transactions
None
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form
8-K
(a) Exhibits:
21. 1995 ANNUAL STATEMENT prepared by the
Servicer.
28. ANNUAL INDEPENDENT ACCOUNTANTS' REPORTS
pursuant to Section 3.06 of the Pooling
and Servicing Agreement.
(a) Agreed Upon Pricedures Letter.
(b) Annual Servicing Letter.
(b) Reports on Form 8-K:
Current reports on Form 8-K are filed on or before the
Distribution Date each month (on, or the first
business day after, the 15th of the month). The
reports include as an exhibit, the MONTHLY INVESTOR
CERTIFICATEHOLDERS' STATEMENT. Current Reports on
Form 8-K were filed on October 16, 1995, November 15,
1995, and December 15, 1995.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Sears Credit Account Master Trust I
(Registrant)
By: Sears Receivables Financing Group, Inc.
(Originator of the Trust)
By:
Larry R. Raymond
Vice President, Finance
Dated: March 28, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No.
21. 1995 ANNUAL STATEMENT prepared by the
Servicer.
28. ANNUAL INDEPENDENT ACCOUNTANTS' REPORTS
pursuant to Section 3.06 of the Pooling
and Servicing Agreement.
(a) Agreed Upon Procedures Letter.
(b) Annual Servicing Letter.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Sears Credit Account Master Trust I
(Registrant)
By: Sears Receivables Financing Group, Inc.
(Originator of the Trust)
By: /S/Larry R. Raymond
Larry R. Raymond
Vice President, Finance
Dated: March 28, 1996
SEARS CREDIT ACCOUNT MASTER TRUST I
5.90% SERIES 1992-1 MASTER TRUST CERTIFICATES
1995 ANNUAL STATEMENT
Pursuant to the terms of the letter issued by the Securities and
Exchange Commission dated December 23, 1993 (granting relief to
the Trust from certain reporting requirements of the Securities
Exchange Act of 1934, as amended), aggregated information
regarding the performance of Accounts and payments to Investor
Certificateholders in respect of the Due Periods related to the
twelve Distribution Dates which occurred in 1995 is set forth below.
1) The total amount of the distribution to Investor
Certificateholders during 1995, per $1,000 interest $543.02
2) The amount of the distribution set forth in paragraph
1 above in respect of interest on the Investor
Certificates, per $1,000 interest................. $43.02
3) The amount of the distribution set forth in paragraph
1 above in respect of principal on the Investor
Certificates, per $1,000 interest.................. $500.00
4) The aggregate amount of Collections of Principal
Receivables processed during the related Due
Periods............................................ $835,670,245.30
5) The aggregate amount of Collections of Finance
Charge Receivables processed during the
related Due Periods................................ $246,970,386.10
6) The aggregate amount of Collections of
Principal Receivables processed during the
related Due Periods which were allocated
in respect of the Investor Certificates.... $642,655,432.29
7) The aggregate amount of Collections of Finance
Charge Receivables processed during the
related Due Periods which were allocated in
respect of the Investor Certificates............... $190,010,394.01
8) The aggregate amount of Collections of
Principal Receivables processed during the
related Due Periods which were allocated
in respect of the Seller Certificate............... $193,014,813.01
9) The aggregate amount of Collections of Finance
Charge Receivables processed during the
related Due Periods which were allocated in
respect of the Seller Certificate.................. $56,959,992.09
10)The excess of the Investor Charged-Off Amount
over the sum of (i) payments in respect of the
Available Subordinated Amount and (ii) Excess
Servicing, if any (an "Investor Loss"), per
$1,000 interest................................... $0.00
11)The aggregate amount of Investor Losses in
the Trust as of the end of the day on December
15,1995, per $1,000 interest....................... $0.00
12)The total reimbursed to the Trust from
the sum of the Available subordinated
Amount and Excess Servicing, if any, in
respect of Investor Losses, per $1,000
interest........................................... $0.00
13)The amount of the Investor Monthly Servicing
Fee payable by the Trust to the Servicer......... $14,583,333.33
14)The Deficit Amortization Amount, as of the end
of the reportable year............................. $0.00
Exhibit 28(a)
March 26, 1996
Ms. Alice M. Peterson Ms. Christine L. Linde
Vice President and Treasurer Trust Officer
Sears, Roebuck and Co. First Trust Illinois National
3333 Beverly Road Association as Trustee
Hoffman Estates, Illinois 60179 231 South LaSalle Street
Chicago, Illinois 60670-0126
At your request, we have applied certain agreed-upon procedures, discussed
below, to the accounting records of Sears, Roebuck and Co. ("Sears") relating
to the servicing procedures performed by Sears for the following Sears Credit
Account Trusts and Sears Credit Account Master Trust I (collectively, the
"Trusts") formed pursuant to the applicable Pooling and Servicing Agreements
(the "Agreements"):
Date of Applicable Pooling and
Trust Servicing Agreement
Sears Credit Account Trust 1991A March 1, 1991
Sears Credit Account Trust 1991B May 15, 1991
Sears Credit Account Trust 1991C July 1, 1991
Sears Credit Account Trust 1991D September 15, 1991
Sears Credit Account Master Trust I November 18, 1992
Sears Credit Account Master Trust A February 1, 1993
For purposes of this letter, we have read each of the Monthly Servicer
Certificates forwarded by Sears as Servicer to the Trustee pursuant to
section 3.04(b) of the Agreements during the calendar year ended December 31,
1995 (collectively, the "Certificates"). We have also performed the
following procedures which were applied, as indicated, with respect to the
Certificates:
a. We have compared the amounts appearing in the following items as set
forth in the Certificates to the applicable month's Portfolio Monitoring and
Monthly Cash Flow Allocations Report:
Trust Items
Sears Credit Account Trust 1991A 3 through 5, 7 through 9,
and 11
Sears Credit Account Trust 1991B 3 through 5, 7 through 9,
and 11
Sears Credit Account Trust 1991C 3 through 5, 7 through 9,
and 11
Sears Credit Account Trust 1991D 3 through 5, 7 through 9,
and 11
Sears Credit Account Master Trust I 4 through 6
Sears Credit Account Master Trust A 4 through 12
We found such amounts to be in agreement.
b. We have proven the mathematical accuracy of the amounts appearing in
the following items as set forth in the Certificates based on the information
obtained from the applicable month's Portfolio Monitoring and Monthly Cash
Flow Allocations Report:
Trust Items
Sears Credit Account Trust 1991A 6 and 10
Sears Credit Account Trust 1991B 6 and 10
Sears Credit Account Trust 1991C 6 and 10
Sears Credit Account Trust 1991D 6 and 10
We were not engaged to, and did not, perform an audit, the objective of which
would be the expression of an opinion on the specified elements, accounts or
items above. Accordingly, we do not express such an opinion. Had we
performed additional procedures, other matters might have come to our
attention that would have been reported to you.
It should be understood that we make no representations regarding questions
of legal interpretation or regarding the sufficiency for your purposes of the
procedures referred to above. Also, such procedures would not necessarily
reveal any material misstatement of the amounts referred to therein.
Further, we have addressed ourselves solely to the foregoing items and
amounts as set forth in the Certificates and make no representations as to
the adequacy of disclosure or regarding whether any material facts have been
omitted.
This letter is intended solely for the information and use of the Board of
Directors and management of Sears, First Trust Illinois National Association
as Trustee, and Investor Certificateholders and should not be used for any
other purpose.
Very truly yours,
/S/Deloitte & Touche
Exhibit 28(b)
INDEPENDENT ACCOUNTANTS' REPORT
Sears, Roebuck and Co.
Hoffman Estates, Illinois:
We have examined management's assertion included in its representation letter
dated March 26, 1996, that Sears, Roebuck and Co. ("Sears") maintained an
effective internal control structure as of December 31, 1995, insofar as such
structure relates to the servicing and financial reporting procedures
provided by Sears to prevent or detect errors or irregularities in amounts
that would be material in relation to the assets of the following Sears
Credit Account Trusts, Sears Euro Accounts Receivable Select Trust, and Sears
Credit Account Master Trusts (collectively, the "Trusts") formed pursuant to
the applicable Pooling and Servicing Agreements (the "Agreements"):
Date of Applicable
Pooling and
Trust Servicing Agreement
Sears Credit Account Trust 1991 A March 1, 1991
Sears Euro Accounts Receivable
Select Trust 1991-1 April 12, 1991
Sears Credit Account Trust 1991 B May 15, 1991
Sears Credit Account Trust 1991 C July 1, 1991
Sears Credit Account Trust 1991 D September 15, 1991
Sears Credit Account Master Trust I November 18, 1992
Sears Credit Account Master Trust A February 1, 1993
Sears Credit Account Master Trust II July 31, 1994
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
obtaining an understanding of the internal control structure as it relates to
servicing and financial reporting procedures performed by Sears, testing and
evaluating the design and operating effectiveness of the internal control
structure, and such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis
for our opinion.
Because of the inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projections of any
evaluation of the internal control structure to future periods are subject to
the risk that the internal control structure may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
In our opinion, management's assertion that Sears maintained an effective
internal control structure as of December 31, 1995, insofar as such structure
relates to the servicing and financial reporting procedures provided by Sears
to prevent or detect errors or irregularities in amounts that would be
material in relation to the assets of the Trusts under the Agreements, taken
as a whole, is fairly stated, in all material respects, based upon criteria
established in "Internal Control - Integrated Framework" issued by the
Committee of Sponsoring Organizations of the Treadway Commission.
We have also reviewed management's assertion regarding the following sections
of the agreements for Sears compliance therewith. Our review was conducted
in accordance with standards established by the American Institute of
Certified Public Accountants.
A review is substantially less in scope than an examination, the objective of
which is the expression of an opinion on compliance with such sections.
Accordingly, we do not express such an opinion.
Based on our review, nothing came to our attention which would cause us to
believe that the servicing provided by Sears has not been conducted in
compliance with the following applicable Sections of the Agreements:
Applicable Sections
of the Pooling and
Trust Servicing Agreement
- ---------- --------------------
Sears Credit Account Trust 1991 A 3.02, 4.03, 4.05, 4.06,
4.07, 8.07
Sears Euro Accounts Receivable
Select Trust 1991-1 3.02, 4.03, 4.06, 4.07,
4.08, 8.07
Sears Credit Account Trust 1991 B 3.02, 4.03, 4.05, 4.06,
4.07, 8.07
Sears Credit Account Trust 1991 C 3.02, 4.03, 4.05, 4.06,
4.07, 8.07
Sears Credit Account Trust 1991 D 3.02, 4.03, 4.05, 4.06,
4.07, 8.07
Sears Credit Account Master Trust I 4.03, 4.04, 4.05, 4.06,
8.07
Sears Credit Account Master Trust A 4.03, 4.04, 4.05, 4.06,
8.07
Sears Credit Account Master Trust II 3.02, 4.03, 4.04, 4.05,
4.06, 8.07
This report is intended solely for the information and use of the Board of
Directors and management of Sears, First National Bank of Chicago and First
Trust Illinois National Association as Trustees, and Investor
Certificateholders, and should not be used for any other purpose.
March 26, 1996
/S/Deloitte & Touche
